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Question 97

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Use the following to answer question : Use the following to answer question :   -(Figure: Loanable Funds Market with Government Borrowing) Use Figure: Loanable Funds Market with Government Borrowing.After an increase in government borrowing,the new equilibrium interest rate will rise from 6% to _____%,and the amount of private savings will _____. A)  10;stay the same B)  8;rise C)  8;fall D)  10;be indeterminate
-(Figure: Loanable Funds Market with Government Borrowing) Use Figure: Loanable Funds Market with Government Borrowing.After an increase in government borrowing,the new equilibrium interest rate will rise from 6% to _____%,and the amount of private savings will _____.


A) 10;stay the same
B) 8;rise
C) 8;fall
D) 10;be indeterminate

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